Strengthening Ghana’s Capital Market is Essential to Growth

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David Tetteh, Manager, Ghana Alternative Markets at the Ghana Stock Exchange (GSE), has asserted that, in order to ensure consistent and inclusive growth of an economy, capital markets play a critical role in mobilizing the savings in productive and long-term assets.
Capital markets, he said, provides a medium of transforming the economy into a more efficient, competitive market place, provides a medium to diversify the risk, improve the information quality and lead to the adoption of stronger corporate governance norms.
According to Mr. David, the relationship between the economy and the growth of capital market is the amount of capital generated through primary issuances, exchange trading turnovers, market indices, market capitalization, and so forth.
Mr. David expressed worries about the situation where only four companies are listed on the GAX platform, ever since its inception in 2014 to facilitate funds to improve their businesses, which speaks ill of the county’s business enclave.
Nonetheless, he said, more companies with enough funds have been willing to surface on the GAX platform through listing equity or debt securities, based on the level of confidence in investors.
Mr. David Tetteh however, encouraged the local companies to seize the available opportunity to facilitate funding from the GAX to expand their businesses.
He was speaking in an interview at a day’s training workshop organized by the United States Agency for International Development Financing Ghanaian Agriculture Project (USAID FinGAP), in collaboration with the Institute of Financial and Economic Journalists (IFEJ), to trained Journalists in agriculture reporting and sensitisation to alternative financing sources.
The workshop dubbed “Enhancing the capacity of financial journalists on the capital market” targeted business and financial reporters, aimed at enhancing media participation in the economic growth and creation of a favourable environment for investment in Ghana through knowledge based reporting.
Some of the key areas covered includes the capital markets, the Ghana Stock Exchange, the Ghana Alternative Market (GAX), Benefits and Incentives, Listing Requirements and Listed Equities.
In his welcome remarks, Mr. Rick Dvorin, Chief of Party for the USAID FinGAP, also indicated that, building the capacity of the media to advance business and financial journalism, would enhance transparency, accountability and good governance in the country and beyond.
He noted “A well informed media with an in-depth understanding of the operations and the dynamisms in the Capital Markets and the financial sector will play a major role in protecting investors from financial fraud.”
Commending journalists for their zealousness on financial literacy, he said, this would enhance excellence in financial journalism, and however, underscored the importance of the public as investors in the capital markets and challenged journalists to present insightful and analytical business news.
Source: Sammy Adjei

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